Hudson's Bay faces major liquidation after court approval

In Canada, an Ontario court granted Hudson's Bay, the oldest company in the country, permission to liquidate all but six of its 80 stores beginning on Monday. The ruling, issued on March 7, 2025, by Ontario Superior Court Judge Peter Osborne, follows the company's recent struggles amid financial challenges exacerbated by reduced consumer spending and changing economic conditions. The retailer, which was originally founded in 1670 as a trading firm for furs, has seen declining sales and increased competition which led it to seek creditor protection earlier this year. As part of the approved liquidation process, Hudson's Bay will begin selling off inventory at most of its locations, including three Saks Fifth Avenue and 13 Saks Off 5th stores across Canada. The company announced that it expects to vacate liquidating stores by June 30, 2025, and the liquidation sales will run until June 15, 2025. The decision to keep six stores operating—namely the flagship location on Yonge Street in Toronto, a store in Yorkdale mall, and four additional stores in Quebec—came as an unexpected relief as earlier plans had focused on a complete liquidation. The recent sales, attributed to heightened customer interest, contributed to this decision. Although the strategy appears to provide a lifeline to the company, many potential risks still loom. Hudson’s Bay, with a storied history that includes being an iconic part of Canada’s retail landscape, now faces critical operational and financial dilemmas, with the current strategy only temporarily halting what could be a complete shutdown. Should financial restructuring not occur swiftly, the initial plan of closing all stores might again become a reality. The company has expressed a strong desire to secure a long-term solution for its financial woes, warning that time is of the essence. It began a sales process for its assets, specifically leases, while customers anticipated deep discounts during the liquidation. The overarching concern remains centered around the potential loss of jobs, with estimates indicating that up to 9,364 positions could be at stake due to the extensive scale of the liquidation and potential full closure of all stores. Hudson’s Bay lawyers have suggested that if a viable restructuring solution is not forthcoming, the situation for their remaining stores will become dire.